HMRC Open a New Front

You could be forgiven for thinking that HMRC are trying hard to impress their paymasters. That’s the government, not the taxpayers in case you wondered.

They are fighting wars on more fronts than your average Syrian rebel.

The latest tax-saving target in their sights is the capital distribution from a company, primarily at winding up.

They are consulting on the prospect of going further, but they have already announced that they are legislating to stop you from winding a company up, taking the loot as capital and then setting up again within a couple of years for another cycle.

This will come in from 6th April 2016. The same time that the new dividend tax comes in that will motivate us to take the capital rather than the income route.

Looks like we are going to have to very imaginative to get anything through.